Trade Credit Insurance Solutions
Accounts receivable is often the largest uninsured asset on your company’s balance sheet and can account for up to 40% or more of your company’s total assets.
Any business that has a debtor’s book offering credit terms, regardless of whether the debtor is local or across borders, needs comprehensive protection from the implications of a financial loss sustained by non-payment, insolvency and business rescue of its debtors.
Trade credit insurance solutions offers your business the means to manage credit and debtor exposures in today’s global and hyper-connected economy, by indemnifying a seller against:
Losses from non-payment of trade debt arising from insolvency and business rescue
Delayed payment by a buyer
Political risks such as currency inconvertibility, war and civil disturbance as well as confiscation, nationalisation and expropriation of a buyer are covered for across boarder transactions
Coverage is designed to:
Prevent disruptive losses
Reduce risk of key account concentration levels
Provide risk transfer of bad debt issues
With trade credit in place, your company can also enhance its bank financing in terms of improving the lending relationship, strengthening its balance sheet and gaining access to more capital at reduced rates. Trade credit solutions can also support sales in new or riskier markets, grow existing accounts, and strengthen customer relationships by helping buyers with letter-of-credit requirements and other issues. Regardless of size or whether a business operates locally or across borders, trade credit cover is becoming a business essential to manage and mitigate the credit risks associated with customer debtor portfolios.